Mullen Automotive announced on Thursday that it has filed a preliminary statement with the SEC to effect a new reverse stock split.
According to the filing, the ratio would range between 1-for-2 to 1-for-100.
However, shareholders would need to approve this proposal at the stockholder’s meeting on December 15, 2023.
“Mullen expects that the primary focus of the Board in determining whether or not to effectuate the Reverse Stock Split will be the ability to obtain and maintain a continued price of at least $1.00 per share of its common stock on The Nasdaq Capital Market without effecting the Reverse Stock Split.
The Reverse Stock Split will only be implemented if necessary to regain compliance with Nasdaq Listing Rule 5550(a)(2), which sets forth a minimum bid price of $1.00.
The Board will determine the final split ratio after stockholder approval and would retain the authority to abandon the Reverse Stock Split at any time or to delay or postpone it,” the press release said.
“Completion of the proposed Reverse Stock Split is subject to market and other customary conditions, including obtaining stockholder approval.
However, there are no assurances that the Reverse Stock Split will be completed, that it will result in an increased per share price or achieve its other intended effects.
The Board reserves the right to elect not to proceed with the Reverse Stock Split if it determines that implementing it is no longer in the best interests of the Company and its stockholders.”
Mullen’s CEO David Michery made no comment on the company’s new proposal to dilute shareholders.
Shares of the company are currently trading below $0.25.
MULN stock is down more than -53% in the past month and more than -99% in the past year-to-date.
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